Meme Coins - A New Wave in Digital Currency

Last updated on: Oct 26, 2023 By Jonec

Trading floors and stock exchanges are being replaced by crypto markets and blockchain technology. Financial landscapes are shifting under our feet and amid these tremors, meme coins have begun to shine as unexpected beacons. We encountered this phenomenon recently, when amidst Bitcoin's steady climb to $35,000, the Shiba Inu coin or SHIB saw an explosive surge in volume, its price tantalisingly close to $0.001 (source: Crypto Panic). This blog aims to further explore the intriguing world of meme coins. Let's dive in.

Understanding Meme Coins

Meme coins, fuelled by internet culture and social media hype, have rapidly become a movement in the crypto industry. The term 'meme coin' is used to describe cryptocurrencies that originated as a joke or an internet meme. Dogecoin (DOGE), famously birthed from a popular internet meme featuring the Shiba Inu dog breed, was one of the first to ride the wave of popularity, setting in motion an era that made space for humour within the serious world of finance. Despite their humorous undertones, there is no laughing off the impact these coins have had on the market.

Market Performance and Relevance

While traditionalists might dismiss meme coins as a passing fad, their performance in the market suggests otherwise. Dogecoin's value soared by over 14,000% in a year, and SHIB, dubbed the 'Dogecoin Killer', increased by over 2,000,000% since its inception, according to CoinMarketCap. This trend isn’t confined to just these two examples. Other meme coins like SafeMoon and Elongate have also shown significant market performance, increasing their visibility and relevance in the rapidly expanding crypto space. Investors are attracted by the potential for high returns, as these coins have demonstrated, and are also often drawn by the social and community aspects of these projects.

Why Meme Coins Matter

Aside from the entertainment value and potential for profit, meme coins serve an important purpose. They serve to demystify cryptocurrencies and bring them to the masses, broadening the appeal of blockchain technology beyond just tech-savvy individuals. Meme coins also foster communities, where members share information, strategies, and sometimes, just good humour. This sense of camaraderie can be an antidote to the often intimidating and isolating world of crypto investments.

Beyond the Meme

As meme coins continue to demonstrate their potential, they are paving the path for future coins with entertainment value, social impact, or even charitable intent. While they may not replace bitcoin or ethereum any time soon, they have undoubtedly carved a unique niche in the complex world of crypto. It’s important to note that like all investments, meme coins also come with risk, so it's advised to do your research and not to invest more than you're willing to lose.